Gold Fields Limited · JSE:GFI
Gold Fields — Merrill Lynch Global Metals, Mining & Steel Conference 2013
21 slides from Gold Fields's conference presentation, May 16, 2013
Slide 1: It's All About Cash!
It’ All Ab It’s Aboutt Cash! C h! Merrill Lynch y Global Metals,, Mining g & Steel Conference - Barcelona 14 – 16 May 2013 Chief Executive Officer – Nick Holland
Slide 2: Forward Looking Statements
Forward Looking Statements Certain statements in this document constitute “forward looking statements” within the meaning of Section 27A of the US Securities Act of 1933 and Section 21E of the US Securities Exchange Act of 1934. In particular, the forward looking statements in this document include
Slide 3: Investors expect us to deliver leverage to the gold price
Investors expect us to deliver leverage to the gold price However, o e e , we e have a e not ot met et ttheir e e expectations….. pectat o s Note: Data indexed to 13 January 2006; index made up of 8 major gold producers’ total return indexes weighted by market capitalisation; Major Gold producers de
Slide 4: The Gold Fields Paradigm Shift
The Gold Fields Paradigm Shift Its ts not ot about ou ounces ces at a any y cost cost… • Review portfolio to optimise cash generation (Focus on NCE) Focus on cash 1 • Prioritise low risk, high return brownfields growth opportunities generation • Pursue greenfields projects only if they offer truly a
Slide 5: Portfolio Review: Unbundling Sibanye Gold
Portfolio Review Unbundling U bu d g Sibanye S ba ye Gold Go d Shareholders Gold Fields International Limited GFIMSA Tarkwa KDC Damang Beatrix St Ives Service Entities Agnew g Cerro Corona South Deep Other Subsidiaries and Investments Two Independent Companies. No Cross Holdings GFI | Its All About
Slide 6: Portfolio Review: Unbundling Sibanye Gold - Rationale
Portfolio Review Unbundling U bu d g Sibanye S ba ye Gold Go d - Rationale at o a e Create fit-for-purpose, sustainable, long-life operations Install a specialist, dedicated and focussed management team Ring-fence SA cash flows for SA projects and dividends Reverse declining production trends Optimi
Slide 7: Portfolio Review: Focus on Sustainable Cash Generation
Portfolio Review Focus ocus on o Sustainable Susta ab e Cash Cas Generation Ge e at o • Corporate Office and Regional structures rationalised Group • Greenfields exploration p spend p cut to US$80 $ million p p.a. • Owner mining conversion completed St Ives • High cost heap leach operation closed •
Slide 8: Focus On Cash Generation – Case Study, Agnew Gold Mine
Portfolio Review Focus ocus On O Cash Cas Generation Ge e at o – Case Study, Agnew g e Go Gold d Mine e Challenges Interventions • Mi d hi Mined high h grade d Ki Kim and d llow grade d MMain i &R Rajah j h • Withd Withdrew ffrom Main M i &R Rajah j h llodes d lodes • Refocus mining on high grade Ki
Slide 9: Prioritise Low Risk, High Return Brownfields Opportunities
Portfolio Review Prioritise o se lowo risk, s , high g return e u Brownfields o e ds Oppo Opportunities u es Tarkwa Tarkwa Expansion Phase 6 (TEP6) D Damang O ti i extraction Optimise t ti off 8 8.4Moz 4M ore b body d Sulphides Expansion Project Cerro Corona Oxides Project Low Risk Strategy To Grow
Slide 10: Pursue Greenfields Projects Only For Superior Returns
Portfolio Review Pursue u sue G Greenfields ee e ds Projects ojec s O Only y For o Supe Superior o Returns eu s Construction Decision (+ve feasibility study) Chucapaca 1 Feasibility Indicated and Inferred Resources Study (+ve pre-feasibility study) APP Far Southeast 4 Damang Yanfolila GFI Target Con
Slide 11: Pursue Greenfields Projects Only For Superior Returns
Portfolio Review Pursue u sue G Greenfields ee e ds Projects ojects Only O y For o Superior Supe o Returns etu s Peru Chucapaca p Project j • Start small if possible • Advance only projects with Philippines Far Southeast Project attractive returns • Enforce stringent g stage g gates g • Where approp
Slide 12: The New Gold Fields: Global Footprint
The New Gold Fields AG Global oba Footprint ootp t FINLAND Arctic Platinum Project MALI Vancouver Yanfolila Denver PHILIPPINES PERU GHANA Far Southeast Cerro Corona Tarkwa Chucapaca Damang AUSTRALIA Manila Agnew Accra Lima St Ives Johannesburg Perth SOUTH AFRICA Santiago South Deep Offices | Mines |
Slide 13: Results from operations – Q1 2013
The New Gold Fields Results esu ts from o operations ope at o s – Q Q1 2013 0 3 Q1 2013 Q4 2012 Q1 2012 Attributable production koz 477 534 498 Cash costs US$/oz 819 798 758 NCE US$/oz 1 291 1,291 1 365 1,365 1 258 1,258 NCE margin g % 21 20 25 EBITDA US$m 404 503 491 Normalised earnings US$m 68 127
Slide 14: Focus on All-in Costs (NCE)
The New Gold Fields Focus ocus on o All-in Costs ((NCE) C ) New GFI Including South Deep New GFI Excluding South Deep US$/oz US$/oz 1 800 1 800 1 600 1 600 30% 21% NCE 1 400 NCE 1 400 Margin Margin 1 200 1 200 1 000 1 000 800 800 600 600 400 400 200 200 - - Jun-08 Sep-08 Sep-10 Dec-08 Jun-09 Sep-09
Slide 15: Leverage the Balance Sheet
The New Gold Fields Leverage e e age tthe e Balance a a ce S Sheet eet Debt Maturity Financial Targets 1 200 • Leverage balance sheet, in particular 1 000 the long end 800 $ million • Strive for long-term Net Debt / EBITDA 600 ratio ≤1.0x 400 200 Liquidity and Funding Policy - • Maintain strong liqu
Slide 16: Dividend Policy
The New Gold Fields Dividend de d Policy o cy Dividend Pay-out Ratio F2008 to F2012 1200 40% 2012 Dividends 38% A cents per sharre 33% 35% 1000 Pay-out ratio 1003 939 30% 800 26% 25% 25% 22% 600 20% 578 15% 400 529 SA 396 10% % 200 330 5% Final dividend R0.75 per share 150 130 140 235 0 0% 2008 2009
Slide 17: International Diversification
The New Gold Fields International Diversification South South South 2016 Production Outlook America America Africa 14% 12% 16% South Africa 30% West West Australasia Africa Africa 28% 35% 42% Australasia 23% 2013 Production Guidance 2016 production assumes South Deep at full production of 700koz Gol
Slide 18: South Deep Project (South Africa) 100%
South Deep Project (South Africa) 100% Capital Cap a Projects ojec s Progress og ess Landmark Union Agreement on new Operating Model – 2 October 2012 F ll production Full d i off circa i 700koz 00k iin 2016 De-stress development increased 75% in 2012. • Targeting 50% improvement in 2013 Self
Slide 19: 2013 Group Guidance
2013 Group Guidance Conservative Co se a e Yete Realistic ea s c Managed production koz 1,910 to 1,990 Attributable production koz 1,825 to 1,900 US$/oz 860 Cash cost R/kg 250,000 US$/oz 1,360 NCE R/k R/kg R395 000 R395,000 US$:ZAR 1=9.00 Exchange rates US$:A$ 1 = 0.962 On Track To Meet Guidance GFI
Slide 20: Conclusion
Conclusion A smaller, more focussed, yet solid platform for growth Focus on cash generation and a superior return on all funds invested Cash generation takes priority over production targets Dividends have first call on cash flows – 25% to 35% of normalised earnings Judiciously advance only low-risk
Slide 21: Investor Relations Contact
Investor Relations Contact Willie Jacobsz Senior Vice President Head of Investor Relations & Corporate Affairs Office: +27-11-562-9775 Mobile: +27-(0)82-971-9238 Willie.jacobsz@goldfields.co.za. Remmy Kawala Vice President, Investor Relations Office: +27-11-562-9844 Mobile: +27-(0)82-312-8692 Remmy.
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